Why should you consider a 529 plan?

A 529 plan is a tax-advantaged savings account designed to be used for the beneficiary's education expenses. Use the money in your 529 for a wide range of college expenses at accredited schools nationwide in addition to tuition expenses for K-12, certain apprenticeship costs, and student loan repayments. 1

What is a 529 savings plan?

The 529 savings plans are more flexible, allowing beneficiaries to use the money at all qualified postsecondary schools, typically without a state residency requirement. He added that 529 savings plans allow owners to select investments for the account and to tailor the risk level to the appropriate time horizon.

Are 529 plans tax-free?

529 plans provide tax-free investment growth and withdrawals for qualified education expenses, but it's important to know and follow the plan rules for distributions.